INTERNATIONAL REAL ESTATE DEVELOPMENT:ENTERING NEW MARKETSEXAMPLES FROM US HOTEL INDUSTRY

Michael Anikeeff, Johns Hopkins UniversityVen Sriram, University of Baltimore

Introduction

Why enter new markets? Best Practices

Hotel Group Chain (nationality) Country Number Hotels/Rooms

Intercontinental HG GB 3741/556,246

Wyndham Worldwide 6473/543,237

Marriott International 2775/502,089

Hilton Corp. 2901/497,738

Accor 4121/486,521

Exhibit 3 International Hotel Chains 2007Source: MKG Consulting Database

Success Factors Location Market Segments/Brands Management Ownership structure

Location Market Screening Government policy

Market segments/Brands Competitive advantage Marketing mix

Management Central control Local flexibility

Ownership structure Entry Mode

Sole ownership Joint venture Franchise Mgt contract Alliance Consortium

Ownership structure Entry Mode

Cost of entry –return Political /financial –risk Quality control—consistency Brand promotion

Summary /conclusion Success factors

Location Market Segments/Brands Management Ownership structure